My parents (retired, post-65) have medical benefits via CVX. For 2017, CVX is switching from group medical supplemental insurance to insurance sold on a marketplace exchange. The choices are complicated. Here are my two quick questions:
1. What choice is the closest match to what the retirees had in 2016?
2. What is the general consensus as the best option?

I apologize if the questions don't make sense or are not correct, as the retiree medical insurance system is complicated and I am still trying to understand it.

We assume your parents are already enrolled in Medicare A, B, and perhaps D and the question is about supplementary coverage. Why would they not just go on the individual market for a Medigap plan?

I fear that a lot of corporate retiree insurance is just a platform that erodes and crumbles to nothing and that these retirees are best off going plain Medigap.

But a question is whether the company is offering a Health Care Reimbursement Account. My employer pretty much abandoned retiree health coverage in a couple of successive steps but early on buying one's own insurance and taking an HCRA was an option. Eventually it wasn't an option but rather the only choice. I never messed around with employer retiree insurance after age 65. On the other hand, I do know a person with a Cadillac plan in Federal Employees Health Benefits who is better off than anyone with a Medigap plan, but that is for a Federal retiree.

Chevron has likely chosen a vendor, such as Aon, who market and manage "exchange" products. They also are likely to be given a subsidy, with which to purchase a product. If the two "likely's" don't come to pass, the choices can be mind boggling.
Instructions on how to do all this were likely (#3) provided, study that document. Try to determine what they need first, healthy, no so much, high Rx expenses, etc. Buy what covers their needs, and not more.

rgnort wrote:Chevron has likely chosen a vendor, such as Aon, who market and manage "exchange" products. They also are likely to be given a subsidy, with which to purchase a product. If the two "likely's" don't come to pass, the choices can be mind boggling.
Instructions on how to do all this were likely (#3) provided, study that document. Try to determine what they need first, healthy, no so much, high Rx expenses, etc. Buy what covers their needs, and not more.

Good luck!

Yes, my employer lobbied hard for people to push the "go online to AON" button, but I pushed the "I bought my coverage elsewhere please send $4000 to my checking account every year to pay for it" button.

Yes, there is a HCRA. My mom also gets Chevron retiree benefits and since I am her POA I have been reviewing the book they sent. I will be setting up an appointment to talk to the enrollment people (I think that is listed on page 8?) in the next day or two. I'll report back when I have more info.

datamonkee wrote:My parents (retired, post-65) have medical benefits via CVX. For 2017, CVX is switching from group medical supplemental insurance to insurance sold on a marketplace exchange. The choices are complicated. Here are my two quick questions:
1. What choice is the closest match to what the retirees had in 2016?
2. What is the general consensus as the best option?

I apologize if the questions don't make sense or are not correct, as the retiree medical insurance system is complicated and I am still trying to understand it.

You didn't mention what your parents have now or what the new options will be. They are different for different areas, but there are probably several choices in your parents area through OneExchange, the market insurance place Chevron is working with. Your parents, or you, can log on to OneExchange and find the options.

Chevron is putting up $1100/year for each retiree. The biggest difference between what your parents have now and what they will have is group health insurance, which they won't have any longer. Individual insurance coverage is a little less and costs are higher.

Paul

When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

rgnort: you are correct. CVX has decided to go with an insurance exchange (oneExchange) for 2017 and will subsidize a little the medical insurance premiums.

dbr & pkcrafter: what my parents have now is a CVX group insurance policy (i think it's called the "chevron senior care plan"). I think CVX, in 2017, is offering an HCRA.

shackleton: i'd be curious to see what you find out. Please update anything you find out. thanks.

I read through the material again last weekend and I think I understand it better now. It looks like he has a choice to buy Medigap or Medicaire Advantage plans via OneExchange. It seems like the Medigap plans are all standardized via the government (plans A-N). So, I think my questions are revised to the following:

1. Any recommendations on what plan (A-N) that my parents should pick? What's the most similar to the previous "Chevron Senior Care Plan"?

2. If all Medigap plans are standardized (ie, plan F for unitedhealthcare is the the same as plan F for Aetna), then how do I choose the insurance provider? Is there a good website that reviews/rates all the providers? My parents are in Houston, if that affects the answer.

3. Do my parents have to go through this process of choosing medicaire supplemental insurance via the marketplace annually through this open enrollment process, or is this decision process a one time event and my parents will be stuck with whomever they choose this year?

Sorry if these questions are stupid. The system is just so complicated. Thanks so much for all your help.

datamonkee wrote:
It looks like he has a choice to buy Medigap or Medicaire Advantage plans via OneExchange.

You don't have to go through OneExchange to buy those plans. They are available to the public from the various insurance companies that offer them. Or -- you can go through a broker like OE and probably pay a commission (but I don't know that). At my employer you just tell them you are buying your own insurance and you automatically qualify for the HCRA but their publicity materials try hard to make you think that is not an option without directly lying about it. If you buy your own plan the HCRA will have a mechanism to file a claim for reimbursement of the cost up to the limit in the HCRA. A major objective for me was to become as completely separated as possible from anyone managing my employer's benefits except to the extent needed to get the money. It is highly unlikely buying through the exchange is required to get the money, buy you need to check.

The old system post-65 was simple they provide "Medigap-type" for everybody eligible, or maybe an HMO/PPO depending on your location. I think.

Now they will use a different mechanism to provide funding ---which may be less $ if you're "early Retiree" by the point system used (if I read correctly).

At some others mentioned I think such policies have standard designs by law.

Knowing a little bit about decimated HR has been for for efficiency over the years, it appears they have a US-based (!) contract call center to avoid a total cluster on this change. Which is exactly what would happen within older retiree crowd that cannot, or will not, use the Internet. Not to mention the normal effects of aging on much of this group.

HR itself cannot take 50,000++ phone calls! I'm *guessing* it's much more mechanically/admin than a change the change to any material coverage-costs. HR well knows the challenges of dealing with this audience, but they also are relentless about moving to "best practices" in everything. One huge reason IMHO CVX has done so well & survived.

Thus--- I would test the call center as my primary source of advice. I don't know how restrictive they are in what they can say due to the Attorneys (but my suspicion is it's fine-- seems straightforward ,if not comfortable, mechanically) In addition, there are a couple of retiree non-cvx websites that sometimes put out some pretty candid advice.

Keep us posted.

Obviously, a lot of people would not care about this thread. But if you've been lucky or unlucky enough to work in a big company I think most will go this way. FWIW

datamonkee wrote:
It looks like he has a choice to buy Medigap or Medicaire Advantage plans via OneExchange.

You don't have to go through OneExchange to buy those plans. They are available to the public from the various insurance companies that offer them. Or -- you can go through a broker like OE and probably pay a commission (but I don't know that).

You do have to go through OneExchange if you want Chevron's $1100 annual contribution. O/E does not get paid by participants, they are paid by insurance companies.

Paul

When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

i just read through some stuff and pkcrafter is right. My parents have to go through oneExchange to get the company subsidy money. If my parents stop once from going with oneExchange, they forfeit the annual subsidy money for the future.